Question 1

What is the formula for receivables (debtors)turnover in times per annum?

Accepted Answer

A) Net sales revenue/average receivables balance 
B) Average receivables balance/net sales revenue 
C) 365/net sales 
D) Net sales revenue/total assets 
A) Net sales revenue/average receivables balance 
B) Average receivables balance/net sales revenue 
C) 365/net sales 
D) Net sales revenue/total assets

Question 2

In a trend analysis of K Company,which of these changes appears to be the most significant in requiring further investigation?

Accepted Answer

A) An increase of 13% in revenues. 
B) An increase of 11% in bad debts written off. 
C) An increase of 7% in total assets. 
D) An increase of 8% in accounts receivable. 
A) An increase of 13% in revenues. 
B) An increase of 11% in bad debts written off. 
C) An increase of 7% in total assets. 
D) An increase of 8% in accounts receivable.

Question 3

All of these ratios are indicators of profitability except:

Accepted Answer

A) return on equity. 
B) earnings per share. 
C) capitalisation ratio. 
D) profit margin. 
A) return on equity. 
B) earnings per share. 
C) capitalisation ratio. 
D) profit margin.

Question 4

The debt ratio measures:

Accepted Answer

A) the proportion of assets financed by borrowing. 
B) the time taken to collect debts. 
C) liquidity. 
D) profits earned in relation to debt. 
A) the proportion of assets financed by borrowing. 
B) the time taken to collect debts. 
C) liquidity. 
D) profits earned in relation to debt.

Question 5

Profit before finance costs and taxation/average total assets is the formula for:

Accepted Answer

A) earnings per share. 
B) profit margin. 
C) return on total assets. 
D) dividend yield. 
A) earnings per share. 
B) profit margin. 
C) return on total assets. 
D) dividend yield.

What is the formula for receivables (debtors)turnover in times per annum?

In a trend analysis of K Company,which of these changes appears to be the most significant in requiring further investigation?

All of these ratios are indicators of profitability except:

The debt ratio measures:

Profit before finance costs and taxation/average total assets is the formula for:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

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Exam 19: Analysis and Interpretation of Financial Statements

What is the formula for receivables (debtors)turnover in times per annum?

In a trend analysis of K Company,which of these changes appears to be the most significant in requiring further investigation?

All of these ratios are indicators of profitability except:

The debt ratio measures:

Profit before finance costs and taxation/average total assets is the formula for:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Filters